Obtaining builder’s risk insurance is a good way to protect yourself when doing home improvements. It protects buildings and the property inside them from damage by vandalism, fire, or storms. Additionally, it protects employers, since it pays for medical bills and lost wages for injured workers. However, be sure to consider the additional coverage requirements if you’re constructing a commercial property.

Before getting a builder’s risk insurance policy, you’ll want to determine how much you’ll pay for it. Rates will vary depending on several factors. For example, your insurance track record will influence your premiums. You can also get a policy that covers unlimited certificates of insurance, which will help you save money over the long run.

Building risk insurance may also cover materials that are stored on your property. If the materials are damaged or lost, you’ll be able to claim on the insurance policy to recover your costs. It’s also wise to get builders risk insurance if you’re responsible for the materials and equipment used in a construction project. Problems with construction can be costly and the financial implications can extend far beyond the costs of materials and equipment. Cost overruns are a common part of construction projects, so it’s important to have the proper insurance coverage.

Builders risk insurance can cover many types of property, including swimming pools, retaining walls, and garages. Typically, builders risk insurance does not cover heavy machinery or equipment. These may need a separate rider. You can also add coverage for temporary structures, scaffolding, and debris removal. When deciding how much coverage to purchase, make sure to discuss the possible risks with your insurance agent.

Depending on the size of your business, builder’s risk insurance can range anywhere from $100 to $2,000 a month. In most cases, the cost will vary between two and four percent of the total cost of your construction project. However, the cost can be worth it if you’re covered for a large construction project.

Builders risk insurance isn’t legally required, but many clients won’t permit construction unless you’re insured. It shows your commitment to your property and accountability for losses that occur during construction. In addition, it protects against the costs that are excluded under general liability. Some small businesses and independent contractors often bundle builder’s risk with general liability and Workers Compensation coverage.

Most builders do not understand how much their builders risk insurance policy is worth and renew it without reading the fine print. However, builders risk insurance is competitive and more affordable than you might think. Compare several quotes and choose the policy that best suits your needs. Consider any discounts and the level of coverage you need – and whether you should also add business interruption coverage.